Tech Mahindra Announced Q4 FY26 Result: Margins Expand Sharply, ₹51 Per Share Dividend Declared

Tech Mahindra FY26 Financial Performance

FY26 was another decent performance by Tech Mahindra, with revenues at ₹56,815 crore, registering a growth of 7.2% year on year. The earnings before interest and tax (EBIT) grew 39.2% year on year, reaching ₹7,152 crore. The Profit After Tax (PAT) was reported at ₹4,811 crore, registering a growth of 13.2% year on year.

In terms of USD, the revenue for the firm was at $6,385 million, representing a 1.9% increase from the previous year. On the other hand, EBIT grew 31.4% year on year to reach $797 million. The EBIT margins

Quarterly Performance Shows Momentum

For Q4 FY26, revenue stood at ₹15,076 crore, rising 4.7% QoQ and 12.6% YoY. EBIT came in at ₹2,084 crore, up 10.2% QoQ and 48.3% YoY, with EBIT margin at 13.8%.

Profit After Tax for the quarter was ₹1,354 crore, up 16.0% YoY, with EPS at ₹15.24.

Detailed P&L Analysis

In terms of the operating segment, Q4 FY26 witnessed revenues of ₹15,076 crore against revenues of ₹13,384 crore in Q4 FY25. The cost of services grew by ₹10,402 crore, thereby generating a gross profit margin of ₹4,674 crore.

Selling, general and administrative expenses were at ₹2,109 crore, resulting in an EBITDA of ₹2,565 crore, marking a substantial rise against EBITDA of ₹1,867 crore recorded in Q4 FY25. For the full year, the company witnessed an increase in EBITDA to ₹9,034 crore against EBITDA of ₹6,991 crore in the previous fiscal.

Other income was registered at -₹205 crore against income of ₹173 crore reported in the previous year. Interest expense was ₹89 crore, while depreciation and amortization amounted to ₹481 crore.

The profit before tax grew to ₹1,791 crore, registering a YoY growth from ₹1,464 crore reported last year. Tax expenses were

Full-Year P&L Performance

For the fiscal year 2026, the revenues were ₹56,815 crore against ₹52,988 crore in the fiscal year 2025. The cost of services amounted to ₹39,869 crore, generating a gross profit of ₹16,947 crore.

The SG&A expenses stayed consistent at ₹7,913 crore. The EBITDA saw a significant rise to ₹9,034 crore from ₹6,991 crore on an annual basis.

The other income dropped to ₹32 crore compared to ₹855 crore in the previous year. The interest expenses went up by a bit to ₹337 crore, whereas the depreciation expenses were ₹1,882 crore.

The profit before tax was recorded at ₹6,846 crore against ₹5,653 crore on a yearly basis. Following the deduction of after-tax expenses, which were ₹1,768 crore, the net profit for the

Deal Wins and Business Strength

The firm won a total of $3,794 million in deals in FY26, which is a growth of 41.6% from last year. The fourth-quarter deal value was $1,073 million, registering a year-over-year growth of 34.5%.

Some of the significant wins came from large transformation deals in the telecom, automotive, financial institutions, energy, healthcare, and tech industries.

AI-Led Strategy and Partnerships

Tech Mahindra further built its emphasis on AI with several moves. It introduced its LLM for educational purposes with 8 billion parameters in support of Hindi language.

It also collaborated with Microsoft, NVIDIA, Fortinet, FICO, SCSK Asia Pacific, and Rubrik for areas such as AI, cybersecurity, cloud, and analytics.

Operational Metrics

Headcount stood at 147,623, down 1,108 YoY. IT attrition was 12.1%. Days Sales Outstanding were 89 days, while cash and cash equivalents stood at ₹8,456 crore.

Record Dividend

The company declared a final dividend of ₹36 per share, taking the total dividend for FY26 to ₹51 per share, the highest ever.

Conclusion

While the company’s share prices may have fallen that very day, there is no denying that Tech Mahindra performed exceedingly well during the FY26 period, especially considering the margins they achieved and their impressive win rates for business deals.